Article

Megadeals and complex tenders

Unlocking the full potential

Published

March 2022

Authors

Many companies pursuing megadeals and complex tenders do not succeed in unlocking their full potential.

Pursuing megadeals requires a clear, overall strategy, explicitly recognised priorities as well as a structured – yet flexible – approach to create a solid link all the way from early-stage dialogues to signing the final contract. If you fail to succeed in any of the steps of the process, it will inevitably lead to a below-average win rate, high cost of bidding and, ultimately, wasted resources. Therefore, the only way to ensure that your investment in megadeals pays off is by getting things right in every step of the process.

By improving your megadeal approach, you can ensure a better return on investment on your megadeals through a higher win rate and/or a lower “cost per bid”.

Why is your approach to megadeals important?

Firstly, competition is getting harder. Often, an attractive megadeal will be a must-win for several bidding companies – and there can only be one winner. In other words, if you do not win the contract, the resources you have invested in the pursuit are wasted.

Secondly, handling a megadeal is expensive, and many companies underestimate the investment. Research in both private and public tenders shows that handling a megadeal can cost as much as 9%1 of the contract value, depending on the industry.

Questions worth pursuing

So, in an increasingly competitive market where every aspect of your approach is key – what are the important questions worth pursuing to ensure that you stand the strongest in the competition to win megadeals in the future?

A megadeal transformation should be part of your growth journey

Identifying where your biggest potential for improvement lies can help you unlock your growth potential. Whether it is optimising your processes, building or expanding capabilities and infrastructure or advising on current and future opportunities, Implement can help you create rapid impact in the short term and demonstrate how to transform your megadeal approach to get ahead – and stay ahead – of competition.

 

1 https://www.kfst.dk/media/47250/cops-private-virksomheders-transaktionsomkostninger.pdf